YG Entertainment, one of the world’s leading K-pop entertainment companies, recently became the newest buyer of Peace Renewable Energy Credits (P-RECs). Through a collaboration with the International Organization for Migration (IOM), YG Entertainment decarbonized the electricity use of BLACKPINK’s concerts in Seoul and London on this prominent music group’s world tour. Revenues from YG Entertainment’s P-REC purchase will be reinvested to support a solar mini-grid at Dr. John Garang Memorial University in Bor, South Sudan.
In an article about the P-REC deal, Min Suk Yang, CEO of YG Entertainment, said, “At YG Entertainment, we believe music can be a force for good. Through this partnership [with IOM], we’re proud to contribute to renewable energy solutions that reach far beyond the concert stage, supporting education, sustainability, and communities affected by crisis.”
This latest transaction builds on past P-REC purchases by leading corporations like Microsoft, Google, Block, and Oriflame, which have funded hospital electrification in South Sudan, community projects in Nigeria, and public streetlights in the Democratic republic of Congo (DRC), Somalia, and Chad—all powered by new renewable mini-grids. The YG Entertainment transaction also reveals a wider opportunity for P-RECs in the entertainment sector, including sports.
The entertainment sector represents a promising market to grow P-REC demand because of how its stakeholders uniquely prioritize stories, brand identity, and media coverage to engage with their respective fandom. Several established industry associations that are advancing greater sustainability—such as the Sustainable Entertainment Alliance, Green Sports Alliance, and Music Sustainability Alliance—represent potential partners to promote P-RECs among companies and other stakeholders.
More specifically, P-RECs can help companies and other stakeholders across the entertainment sector value chain make progress toward their branding, environmental, and audience engagement goals together. There are seven main channels to grow P-REC demand in this sector, including:
Venues: Stadiums, arenas, concert halls, and theaters can make progress toward sustainability and branding goals by purchasing P-RECs equal to their annual electricity use or based on a different metric (e.g., implementing an impact-based match program where they buy P-RECs to cover all or a portion of a venue’s annual electricity use).
Events: Sport and entertainment events—ranging from the FIFA World Cup and NBA Finals to the Oscars, Grammys, concert series, and similar—can buy P-RECs based on event-related electricity use or another metric (like funding an entire P-REC project) to achieve sustainability and branding goals and better engage with their target audiences.
Individuals: Star athletes, teams, actors, and performers, particularly those with personal ties to fragile countries where P-REC projects are located, could sponsor entire P-REC projects at an individual level to support local impact projects.
Production and media platforms: Sports, music, television, and film production companies and media platforms can make progress toward their sustainability and branding goals by procuring P-RECs equal to their annual electricity use or at a volume sufficient to fund one or more P-REC projects.
Ticket booking platforms: The platforms that people use to get tickets for sport and entertainment events could buy P-RECs to achieve their sustainability and branding goals to better differentiate their platform among existing and potential users.
Sponsors: The companies that pay to sponsor sports and entertainment-related venues and events may also serve as potential P-REC buyers, where venues and events can introduce sponsorship arrangements, where corporate sponsors cover the cost of P-REC purchases so they get the top sponsorship spots.
Talent agencies: Various agencies that represent athletes, actors, and performers—some of which already have sustainability and social impact initiatives—can differentiate themselves and help stars achieve their respective goals by integrating P-RECs into their services.
Clean energy and sustainability-focused advisory firms with clients falling under any of these categories can use recently published guidance to learn how they can integrate P-RECs into their client conversations and strategies.
Energy Peace Partners (EPP)—the global issuer of P-RECs—is also exploring broader strategic partnerships with organizations, companies, and individuals across the entertainment sector. Please contact Doug Miller, Director of Market Development at EPP, at dmiller@energypeacepartners.com to share ideas, feedback, or questions.